Aldar said in a filing to the emirate's stock market that its board will meet Thursday to discuss the proposals in preparation for a possible shareholder vote. It gave few details.

Among the topics up for discussion is the conversion into shares of existing convertible bonds previously issued to state-run investment firm Mubadala Development Co. - a move that would effectively boost the government's equity stake in Aldar.

A spokeswoman declined to comment further.

Chet Riley, an analyst at Nomura Securities in Dubai, said conversion of the Mubadala bonds could raise the government's stake to 44 percent, up from 38 percent directly or indirectly owned now.

Mubadala, one of several funds Abu Dhabi uses to invest its oil wealth, declined to comment.

Aldar was set up in 2004 to accelerate real estate growth in the oil-rich emirate, which neighbors Dubai and serves as the capital of the United Arab Emirates. It spearheaded development of massive projects, including the unfinished Al-Raha beachfront community and the Yas Island project that hosts the emirate's Forumla One Grand Prix.

Like state-linked property companies in neighboring Dubai, it borrowed heavily to fund its growth and fell on hard times when the global economy faltered.

Aldar early last year sold $2.5 billion of assets, including the futuristic Formula One race track, to the Abu Dhabi government to raise cash.

Bank of America Merrill Lynch analyst Abdelrali El Jattari estimated in November the company needed $2.67 billion of new funding by this year to survive, saying it had a "critical funding problem." Days later, Aldar reported a third-quarter loss of nearly $200 million.

Meanwhile, Dubai builder Arabtec said its board will call a shareholders meeting to seek approval for a capital raise through a rights issue and sale of five-year convertible debt.

The largest builder in the United Arab Emirates by market value, said on Tuesday it will call an extraordinary shareholders meeting to consider an issue of 398.67 million shares at 1 dirhams a share to existing shareholders and sell $150 million worth convertible bonds.

The company's board of directors will meet on Jan. 16, it  said in a statement to the Abu Dhabi bourse. 

Arabtec plans to use the proceeds to fund its expansion plans and increase working capital, the statement said. 

Arabtec, which is bidding for $8.17 billion of work outside its local markets, may look at new funding sources for its expansion plans, its chief financial officer told the Reuters Middle East Investment Summit in Dubai in October.

The company is expanding overseas to diversify its  portfolio away from Dubai's once-booming property sector which has been hit hard by the global financial crisis as developers slow or cancel projects and jobs are slashed. 

Property prices in Dubai have been under pressure since late last year, when the financial crisis and a slump in oil prices ended a six-year economic boom in the Gulf region.

Earlier in the month, Arabtec's Chief Executive Riad Kamal was handed a trading ban by the country's regulator, said he sold shares prior to the announcement of projects in May last year as part of his portfolio reshuffle.